Hamilton out millions as vacant Stelco lands drop in value

Hamilton Mayor Fred Eisenberger says it “defies logic.”

Eisenberger is reacting to a decision by the Municipal Property Assessment Corporation (MPAC) to dramatically slash the assessed value of hundreds of acres of vacant Stelco land, from $180,000 an acre to $100 an acre.

The general manager of finance, Mike Zegarac, has told city councillors that MPAC’s decision means $2 million to $3 million in lost revenue to the city.

The mayor confirms that could cost the average Hamilton homeowner an extra $8 on their tax bill since “there’s nowhere else for us to go” to address the shortfall.

Eisenberger adds that’s only the Stelco lands and if “all the other industrial users do the same, then we’re in a world of hurt in terms of our tax load.”

The city is appealing MPAC’s decision which Eisenberger terms “unfathomable.” He notes that “right now there are properties being bid on at $350,000 an acre in the industrial area.”

The vacant lands are eventually to be sold by a provincially appointed land trust as part of Bedrock Industries’ court-supervised purchase of Stelco from U.S. Steel Canada earlier this year.

The reduced land value could have an impact on the steelmaker’s pensioners since proceeds are meant to help fund the pensions and benefits of retirees.